Banking facilities reach remote rural areas of Madhya Pradesh

Business of Rs. 800 crore by Ultra Small Banks

By making banking facilities available in the remote rural areas, Madhya Pradesh Model 'Samriddhi' prepared for the purpose of increasing of economic growth got unprecedented success. Recently, United Nations Development Programme (UNDP) released a report on this unique model. Praising this model as the best innovation in direction of good governance, the Union Personnel, Public Complaints & Pension Ministry invited officers of state government to Delhi to give a presentation of the model.

It is noteworthy that effective efforts have been made in rural areas of Madhya Pradesh for connectivity. These include road connectivity, broadband connectivity for making facilities available to the citizens through information technology and management of banking and financial facilities. Additional Chief Secretary Panchayats, Rural Development and Social Justice Smt. Aruna Sharma stated that banking facilities have been ensured by establishing Ultra Small Banks in range of each 5 kms to give a fillip to economic growth in the state. Under financial inclusion model of Madhya Pradesh 'Samriddhi', 14 thousand 667 villages were identified in which villagers had to travel from 20 to 90 kms for banking facilities. For removing this disparity, total 2,998 ultra-small banks are being opened in rural areas. Of this, 2,024 ultras small banks have been opened and have transacted business of over Rs. 800 crore in just a few months. Due to its success, this unique model of Madhya Pradesh has drawn attention of many states of the country and their delegations have been reaching here to study the processing system of ultra-small banks. It was considered earlier that in rural areas banks do not get adequate business from banking facilities, but rural banking has got new direction from the unprecedented success of 'Samriddhi' model.

Needy people have easily been benefited with beneficiary-oriented schemes through ultra-small banks. Through these banks, direct funds have been transferred to bank accounts of beneficiaries. Through ultra-small banks, economic assistance and pension amounts are reaching directly by Samagra portal in the bank accounts of BPL families, old people, non residential, weaker people and widows in rural areas by ultra-small banks apart from scholarships of students, amounts for school uniform & bicycles and for Janani Suraksha Yojana.

For running ultra-small banks, local villagers are appointed as business correspondent by the banks. These banks have been opened in Gram Panchayat buildings and E-Panchayat rooms so that villagers may trust them easily. Ultra-small banks are being established at very low cost due to easy system of information technology and small equipments. Used for running the banks, hand-held devices can be carried anywhere easily. According to immediate requirement, USBs reach the villagers' home and fields too and it makes available the facilities to villagers in opening accounts and in payments. With this unique system, benefits of banking facilities are reaching the blind, weak and old villagers at their home easily